Since personal loans are unsecured, there is no need to pledge any security.
But lenders also charge a higher interest rate to negate their possible defaults risks.
On that note, it is vital to know current personal loan interest rates factors that can affect it. Read on!
- Your CIBIL score
The higher is your CIBIL score, the lower will be the offered current personal loan interest rates. It denotes that you can make timely repayments. Hence, lenders reward you with a lower interest rate. You should aim to have a credit score of 750 or more.
2. Your income level
If you are earning well, then the current personal loan interest rates for you will be lower. If not, your application may either be rejected, or you will need to deal with a higher rate.
3. Your employment status
If you work with a known company, lenders could be sure that you will receive your salary on time. Thus, they can be sure of timely repayments. Even in this case, you can avail of lower current personal loan interest rates.
4. Existing relationship with the bank
5. Your negotiation skills
If you know how to negotiate with your new lender for a lower rate, it can help you get approval for a subsidized loan rate.
By implementing these tips, you can help yourself lower current personal loan interest rates and save big on repayments.
Bajaj Finserv offers pre-approved deals on personal loans, home loans, business loans and more. It is to simplify loan processing and make it faster.
You can check out your pre-approved loan offers today after sharing your basic details, such as your name and mobile number.